Why Does Tesla’s Sales Model Irk Auto Dealers?

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March 10 (Bloomberg) -- Bloomberg News’ Jeff Green reports on Tesla CEO Elon Musk’s battle with auto dealerships over the company’s business model of selling vehicles directly to customers on Bloomberg Television’s “In The Loop.”

Dealerships fight.

This is going to carry on for a while.

The dealers a been fighting this for 75 years and they will not give up.

It is so important to their model that they cannot let anyone do it.

They come out against it.

Has been more successful than other people.

We talked to one ahead of the dealership lobby in texas.

He said one of the things that is missing in this fight between the two is auto dealerships do contribute to job growth.

They do invest in their local community.

He is saying that will be missing if we start seeing companies like tesla sell directly to customers.

Tesla is arguing the opposite.

They say we invest and bring jobs.

They have 50 sales centers.

They say we do the same thing with our locations.

The difference is we directly control them rather than them being franchised.

The dealers like their independence.

They like to have the gate between them and the factory.

It is a controlled they have.

If tesla does not need it, what is to stop general motors?

Let me tell you what elon musk said to me last summer about these auto dealers.

The whole idea is they carry out the will of the people.

They are not doing that.

Car dealers have such control.

Who is winning?

Is it the auto dealers or is it elon musk?

It is still up in the air.

He does have location selling cars and they are fighting him.

He is holding his own.

He is a billionaire.

It is an even fight.

You have to wait and see how it stacks up.

One big concern that he has is regular car dealers that deal with conventional gasoline engines do not know how to sell an electric car.

Maybe they don't want to.

If you're going to spend 100 thousand dollars, buy a porsche.

Last week we had the gentleman from auto dealer, he said that he would welcome it.

In his case it is not as big of an issue.

This is a 75 year tradition to fight tooth and nail.

Each one of them is a millionaire with support in their local community.

It is that kind of fight every time the issue comes up.

Jeff green, thank you so much.

Samsung is jumping into the digital radio market.

If you own a galaxy, you can get it.

Can it compete with pandora?

You'll find out.

This text has been automatically generated. It may not be 100% accurate.

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